Research On The Impact Of Digital Financial Inclusion On Employment Of Urban Residents

The enormous economic growth of 40 years has led China’s overall situation into a new phase,which also brings new challenges to China.In the economic transformation,the idle labor force released by traditional industries cannot be absorbed completely,which will have an impact on economic stability.At the same time,the income gap of groups which is different in cultural levels and environment is large.With the development of technology,digital finance has overcome the traditional financial institutions’ difficulties,and lowered the threshold and cost of financial services.The development of digital finance benefits and facilitates the regions and groups that traditional financial institutions cannot involve,especially the low-income population,enterprises of small scale and other groups.This revolutionary financial service directly or indirectly affects employment by influencing financing costs and reducing financial exclusion effect.The theme of this paper is to figure out how digital finance makes a difference to the employment level of urban units from the provincial level.In the literature review,this paper combs how digital inclusive finance affect real economy,traditional financial market and resident employment,and related theoretical studies on finance and employment.Through the analysis of the various characteristics of digital Inclusive Finance in the development,the essential conception of inclusiveness is explained further.In the analysis of the mechanism of how digital inclusive finance improve the employment level,this part list some effect method like alleviating the financing constraints of small and micro enterprises,advancing entrepreneurial behavior in underdeveloped areas and making innovations.In the empirical analysis,this paper matches the digital inclusive financial index released by Peking University with the employment structure and income of urban units,exploring the impact of index on employment.Taking reverse factor into account,this paper uses fixed effect model and finds that employment level does improve with the development of digital finance.The first level dimension of digital Finance(coverage,use depth and digital support service level)can promote the improvement of employment level.In the specific analysis of business dimension,it is found that credit business,investment business and insurance business are conducive to the development of employment level and related explanations are given.In the heterogeneity analysis,it is found that other units and the central and western regions have benefited more,which deeply reflects the inclusive nature of digital Inclusive Finance.Based on the above analysis and research results,some measures are raised to make a full use of benefits of digital finance in practice,including strengthening digital infrastructure construction,enriching product design,customizing differentiation policies for different regions and groups,strengthening risk supervision on digital Inclusive Finance,etc.